The WCIRB data quality programs ensure the quality of the data reported by insurers. Each of these programs is described below.
The WCIRB California Premium Audit Accuracy Program is authorized by the California Insurance Code and is designed to promote audit proficiency. Under this program, the WCIRB evaluates insurer auditing practices to determine the accuracy and reliability of insurers’ payroll audits, and ensure the accurate reporting of exposures, claims classifications, and the application of experience modifications by insurers.
Accurate pure premium rates and experience modifications require reliable unit statistical report (USR) data. The WCIRB Unit Statistical Data Quality Program monitors the quality of USR data submitted to the WCIRB and proactively identifies potential data quality deficiencies using a series of key performance indicators related to unit statistical data quality.
Aggregate financial data reported by insurers is a critical component in the development of California workers’ compensation advisory pure premium rates. The Submission of California Aggregate Data Program encourages insurers to submit timely, accurate and complete quarterly and annual aggregate financial data to the WCIRB.
The WCIRB Large Risk Classification Validation Program was developed to improve the accuracy of classification relativity data through the review of payroll and losses on unit statistical reports (USR) that are of a sufficient size to have a potentially significant impact on advisory pure premium rates for one or more classifications. Policies selected for audit under this program fall outside of the scope of the WCIRB California Premium Audit Accuracy Program.
The California Medical Transaction Data Quality Assurance Program promotes the accurate submission of California medical transaction data used for research and medical cost trend analysis as part of the WCIRB’s pure premium ratemaking function. This program is administered on a calendar quarter basis and applies to the Medical Data Calls made in accordance with California Medical Data Call Reporting Guide.
The Special Assessment for Systemic Misreporting of Unit Statistical Report Data subjects levies special assessments if it is determined that an insurer's unit statistical data was inaccurate due to a widespread systemic failure or deficiency which caused the WCIRB to issue numerous incorrect experience modifications.